Maybank to Fully Own Etiqa in RM4.83 Billion Deal

Maybank will acquire the remaining stake in Etiqa for RM4.83 billion, strengthening its insurance business, boosting earnings, expanding cross-selling opportunities, and reinforcing long-term growth prospects.

Maybank Strengthens Insurance Leadership

Maybank has announced plans to acquire the remaining 30.95% stake in Maybank Ageas Holdings Bhd (MAHB) from Belgian insurer Ageas SA for RM4.83 billion, paving the way for full ownership of Etiqa’s insurance and takaful operations in Malaysia and Singapore.

The proposed acquisition values the transaction at approximately 1.98 times price-to-book value and 15.3 times price-to-earnings, which analysts consider reasonable compared with listed peer LPI Capital.

The deal is expected to strengthen Maybank’s presence in the insurance and takaful industry while enhancing its ability to offer integrated financial solutions across banking, wealth management and bancassurance services.

Analysts believe full ownership of Etiqa will create greater opportunities for cross-selling products to Maybank’s extensive customer base, improving operational synergies and supporting long-term revenue growth.

The acquisition is also expected to be earnings accretive, with an estimated 2% increase in profit after tax and minority interests (PATAMI), equivalent to an additional contribution of about RM178 million.

Despite the positive outlook, analysts are maintaining their current earnings forecasts pending the completion of the transaction and the necessary regulatory approvals. They continue to maintain an Outperform recommendation on Maybank with a target price of RM11.90.

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